WASHINGTON-The Industrial Telecommunications Association put Nextel Communications Inc. and Pegasus Guard Band L.L.C. on notice Friday that the private wireless association will “watch very closely” to ensure the enhanced specialized mobile radio carrier and the digital broadcast satellite provider play by the rules as the three entities become guard-band managers.
Nextel, Pegasus and ITA-affiliate Access Spectrum L.L.C. were the top three bidders in the 700 MHz guard-band manager license auction that concluded last month. The auction raised $519.9 million for the U.S. Treasury.
On Tuesday, the winning bidders-six other entities were the top bidders on at least one license-are expected to file forms with the Federal Communications Commission explaining their ownership structure and plans for use of the spectrum.
The entities also must make another down payment. Parties objecting to the winners will be allowed to file protest petitions, which the FCC must review before requiring final payments and awarding the licenses.
Nextel may ask for a waiver from the guard-band rules because it appears the company may violate two rules. The first is the prohibition against using a specific technology-Nextel exclusively uses iDEN technology. Also, the rules require that the guard-band manager lease 51 percent of the spectrum to entities that do not employ cellular architecture.
Nextel could not be reached for comment. However, entities in general are wary of making comments until their paperwork has been filed with the FCC.
Thomas Sugrue, chief of the FCC’s Wireless Telecommunications Bureau, said he would not look kindly on a waiver until the guard-band-manager concept had been given a chance to work.
ITA President Mark Crosby, who gave an hour-long presentation on the guard-band-manager auction process to his members on Friday, told RCR Wireless News that he does not like the word “fight” to describe what kind of action ITA will take if Nextel or Pegasus file for waivers.
Many times during his presentation, Crosby emphasized what the rules say and how the rules favor private-wireless entities.
The FCC began auctioning off six megahertz of spectrum in the 700 MHz band (TV channels 60-69) on Sept. 6 to entities that then can lease the spectrum to private-wireless entities or other entities that will employ systems that will not interfere with adjacent public-safety operations. A total of 104 licenses were offered in 52 major economic areas. Of these, 96 were sold to nine bidders. The eight unsold licenses will be part of a future auction, the FCC said.
As guard-band managers, winning bidders will lease the spectrum for private internal use. Private systems equate closer to public-safety systems so it is believed there will be less interference with adjacent public-safety systems.
The guard-band license is a new concept for the FCC. The agency seems pleased with the results of the auction, and FCC Chairman William Kennard has commended ITA for taking a leadership role in developing the guard-band-manager concept.
Kennard’s speech marked the first time in 31 years that a sitting FCC chairman spoke at the ITA Washington conference, Crosby said.
As part of his breakfast speech to ITA, Kennard also noted the private-wireless industry often is under attack from both commercial and government interests as spectrum has become more scarce.
“We are in danger of suffering a `spectrum drought’ in our country. And from my vantage point, everybody seems to have a different solution to this problem. The commercial wireless industry says that it’s easy; just get more spectrum from the Department of Defense. The [Defense Department] says no problem, get more spectrum from commercial wireless. And when the two of them get together, they both say get it from … guess who: you, the private-wireless industry,” said Kennard.
Allowing private wireless to gain access to spectrum through the guard-band-manager concept is likely to be employed again. In fact, a notice of proposed rule making allowing additional band managers could come this week at the FCC’s open meeting.
An item on the agenda says the FCC will consider uses for spectrum in the 4.9 GHz band and at 3650-3700 MHz, transferred from the federal government.
